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The Council has not been able to make any change in the issue of certificates, or get this matter placed on a better footing, despite its efforts in that direction. Further changes have taken place in the electrical classes during the year. In June Mr. Lancaster relinquished his duties to pursue his studies at the University, and was succeeded by Mr. Fairfield, the present instructor. As the work in connection with these classes in this school has increased immensely, and the time at the disposal of the instructor is limited, owing to his other duties at Thames and Karangahake, an application has been made to the Mines Department to appoint a separate instructor for this district, which has been favourably received, but not yet acceded to. An attempt made during the year by the Otago University to reduce the underground term of service for mine-managers' certificates from five years to one, and to increase the technical portion of the examination, was strongly opposed by this Council, and has not been carried into effect. A large number of prizes was offered for competition at the late examination, and the thanks of the Council are due to Messrs. Haszard, Livesey, and E. Morgan for their presentation of medals, and to Messrs. R. E. Williams, P. G. Morgan, D. J. Morgan, and others for subscriptions for this purpose. The Council desires also to thank Messrs. P. G. Morgan, W. Ridings, M. J. Stewart, and Boyd Bennie for gifts of interesting and useful specimens. It is gratifying to note that greater interest is being taken in the mining class, and that the attendance in this branch is steadily increasing. At the end of the year the Council decided to offer a scholarship entitling the holder to free tuition at the school of mines for one year, available to any pupil attending a school within the Waihi Borough. Equal marks were obtained by two competitors, and the Council decided to admit both as scholarship students for the present year. Arrangements have been made during the present year for instructing a class in architectural drawing, which should be largely attended. Further much-needed alterations and additions have just been made to the school buildings, but with the large number of students attending the accommodation is at times somewhat taxed. During the year the total receipts of the institution have been £931 18s., including a sum of £607 4s. paid by the Government in subsidies, and a donation of £150 from the Waihi Borough. An increase has taken place in students and members' fees, but the subscribers' list has not expanded appreciably, and it is to be regretted that more of our citizens do not take an interest in the school's welfare. The total expenditure has amounted to £773 Is. 5d., including a grant of £25 to the Waikino School of Mines as previously arranged with the Borough Council, and an expenditure of £51 on furniture, gas-fittings, and repairs, leaving a balance to credit of £158 16s. 7d. A liability, however, of about £80 has been incurred during the recess in alterations and additions to the buildings, and this credit balance will now be reduced to about £70, but a further sum on subsidy and salary account is now due from the Mines Department. In concluding this report the Council desires to express its appreciation of the able services rendered by the instructing staff through the year, and to thank those who have, by donations and personal assistance, contributed to the present satisfactory position of the institution.

Mr. Sidney Fry, Director of the Westport School of Mines, to the Under-Secretary, Mines Department, Wellington. Sir,— Westport, 4th May, 1907. I have the honour to report on the work done by the Westport School of Mines during the last year as follows :— The class attendance at the main school and its branches at Granity, Millerton, and Denniston has been fairly well maintained, the total average attendance being shown in the accompanying table :— AttrSe. Mechanical drawing .. .. .. .. .. .. .. 15 Chemistry (theoretical and practical) .. .. .. .. .. 16 Steam and steam-engines .. .. .. .. .. 13 Mineralogy .. .. .. .. .. .. .. .. 5 Assaying .. .. .. .. .. .. .. 5 Mine and land surveying .. .. .. .. .. .. 6 Mathematics .. .. .. .. .. .. .. 13 Mining .. .. .. .. .. .. .. .. 5 The annual schools of mines examinations were held in December last; five students presented themselves for examination, gaining one first-class, three second-class, and one third-class pass. During the year sixty-seven assays for gold, silver, and other metals have been done, also'nine analyses of coal, as well as other analyses for rare earths, identification of minerals and rocks, tests of clay for brickmaking, analysis of ointment, tests of samples supposed to be ambergris, &c. A moderate charge is made for quantitative analyses and assays, but minerals and ores are identified for prospectors in the district free of charge, and the greatest use is made of the facilities thus afforded by the school of mines. The prize given by the proprietors of the Australian Mining Standard to each school of mines for the student most distinguishing himself at that school in subjects of the mining engineering course